PIP Insurance Explained: What It Covers, Which States Require It, and How to Use It
PIP at a glance
- What it is: Personal Injury Protection - pays your medical bills and lost wages after a car accident regardless of fault
- Required in: 12 no-fault states (FL, MI, NY, NJ, PA, HI, KS, KY, MA, MN, ND, UT) plus DE and OR
- Minimum coverage: $3,000 (Utah) to $50,000 (New York)
- Lost wages: Covered at 60-85% of gross income depending on state
- Use PIP first - it pays faster than health insurance and covers more
First Responder Insight: In no-fault states, PIP is your first line of financial defense after a crash. People delay treatment because they are worried about who pays - that delay hurts both your health and your legal claim. PIP exists precisely so you can get care immediately without waiting for fault to be sorted out. File your PIP claim the same day you file your accident report.
What Is PIP Insurance?
PIP - also called "no-fault insurance" - is a first-party coverage that pays you directly through your own policy, without requiring you to prove the other driver was at fault. It is the financial foundation of no-fault insurance systems, where each driver's own insurer covers their medical expenses regardless of who caused the crash.
In at-fault states without mandatory PIP, the injured driver typically must wait for the liability claim against the at-fault driver to resolve before receiving compensation - a process that can take months or years. PIP eliminates that wait.
What PIP Covers
Covered by PIP
- Emergency room and hospital bills
- Doctor and specialist visits
- Surgery and anesthesia
- Physical therapy and rehabilitation
- Prescription medications
- Ambulance and transport fees
- Lost wages (60-85% of gross income)
- Household services if injury prevents normal activities
- Funeral expenses (most states)
- Child care costs caused by your injuries
- Passengers in your vehicle
- You as a pedestrian struck by any vehicle (most states)
NOT Covered by PIP
- Vehicle damage (use collision coverage)
- Injuries to the other driver or their passengers
- Property damage
- Pain and suffering (non-economic damages)
- Medical care for intentional self-harm
- Injuries while committing a felony
- Injuries above your policy limit
- Racing or off-road vehicle injuries
PIP Requirements and Limits by State
The table below shows every state where PIP is required or default-required with an opt-out. All other states offer PIP as optional add-on coverage.
| State | Required? | Minimum PIP | Lost Wage Benefit | Threshold to Sue |
|---|---|---|---|---|
| Florida | Yes | $10,000 | 60% up to $10,000 | Permanent injury |
| Michigan | Yes | Choice: $50K / $250K / $500K / unlimited | 85% up to 3 years | Serious impairment |
| New York | Yes | $50,000 | 80% up to $2,000/mo | Serious injury |
| New Jersey | Yes | $15,000 | 70% up to $100/day | Verbal or monetary (choice) |
| Pennsylvania | Yes | $5,000 | Included in limit | Choice of full or limited tort |
| Hawaii | Yes | $10,000 | Included in limit | $5,000 medical threshold |
| Kansas | Yes | $4,500 medical + $900/mo wages | $900/mo up to 1 year | $2,000 medical threshold |
| Kentucky | Yes | $10,000 | Included in limit | Choice of no-fault or tort |
| Massachusetts | Yes | $8,000 | 75% up to $8,000 combined | $2,000 medical threshold |
| Minnesota | Yes | $40,000 | $20,000 of $40,000 | $4,000 medical threshold |
| North Dakota | Yes | $30,000 | Included in limit | $2,500 medical threshold |
| Utah | Yes | $3,000 | 85% up to $3,000 combined | $3,000 medical threshold |
| Delaware | Yes | $15,000 | Included in limit | Not a true no-fault state |
| Maryland | Opt-out | $2,500 | Included in limit | At-fault state (tort) |
| Oregon | Yes | $15,000 | 70% up to $3,000 | At-fault state (tort) |
| Texas | Opt-out | $2,500 | Included in limit | At-fault state (tort) |
Source: State insurance department statutes. Minimum requirements as of 2026 - verify current requirements with your state insurance commissioner.
PIP vs. Health Insurance: Which to Use First?
In states with PIP, use PIP first. Here is why:
| Factor | PIP | Health Insurance |
|---|---|---|
| Deductible | Usually none | Must meet annual deductible first |
| Speed of payment | Within 30 days (required by most states) | Weeks to months |
| Lost wages | Covered (60-85% of income) | Not covered |
| Household services | Covered | Not covered |
| Network restrictions | Any licensed provider | In-network only (for HMO/EPO) |
| Subrogation | Yes - insurer may recover from settlement | Yes - insurer may recover from settlement |
| Premium impact | Minimal to none | None |
PIP vs. MedPay: What Is the Difference?
| Feature | PIP | MedPay |
|---|---|---|
| Covers medical bills | Yes | Yes |
| Covers lost wages | Yes | No |
| Covers household services | Yes | No |
| Covers funeral expenses | Yes (most states) | No |
| Available in | Required in 14 states; optional elsewhere | Optional in most states |
| Typical limit range | $3,000 - $50,000+ (mandatory states) | $1,000 - $25,000 |
| Covers passengers | Yes | Yes |
How to File a PIP Claim: Step by Step
Report the accident to your own insurer immediately
Call your own insurance company - not the other driver's - the same day as the accident. PIP is your own first-party coverage. Many states have strict deadlines: Florida requires PIP treatment within 14 days of the accident. Missing this window can result in denial of benefits.
Tell every medical provider to bill your PIP first
When you check in at the ER, urgent care, or any provider, tell them you were in a car accident and have PIP coverage. Give them your auto insurer's name and your policy number. Providers who bill your health insurance first may create unnecessary subrogation complications.
Get a PIP claim number and adjuster contact
Your insurer will assign a PIP claim number and adjuster. Keep this number handy - every provider needs it for billing. Follow up with your adjuster within a week to confirm the claim is open and bills are being received.
Submit lost wage documentation
Lost wages are not automatic - you must document them. Get a letter from your employer on company letterhead stating your hourly rate or salary, regular hours, and the dates you missed. Also provide your most recent pay stubs. Self-employed individuals need to provide prior tax returns.
Attend any required Independent Medical Examination (IME)
Your insurer may require you to submit to an IME with a doctor of their choosing. Attendance is generally mandatory - refusing or missing the appointment can suspend your PIP benefits. You may bring your own doctor to observe.
Track your remaining limits and plan for exhaustion
Monitor how quickly your PIP benefits are being used. If you are approaching the limit and treatment is ongoing, notify your health insurer to prepare for the transition. Simultaneously, your attorney (if you have one) will begin building the liability claim against the at-fault driver for amounts above PIP.
What Happens When PIP Runs Out?
Health insurance takes over medical payments
Once PIP is exhausted, your health insurance becomes the primary payer for ongoing treatment. If you have a deductible that resets, be prepared for out-of-pocket costs to resume. Coordinate with your providers to ensure smooth billing transition.
Lost wages become part of the liability claim
In at-fault states and in no-fault states where you meet the injury threshold, lost wages beyond PIP can be included in your bodily injury claim against the at-fault driver. Document every day of missed work carefully - these amounts are recoverable in a settlement.
You may be able to buy additional PIP or "PIP excess" coverage
Some insurers offer excess PIP or extended PIP riders that activate after your primary limit is exhausted. If you have a high-income job or chronic health condition, carrying higher PIP limits costs relatively little compared to the protection it provides.
In no-fault states, check if you can now sue
True no-fault states only allow tort lawsuits if your injuries meet a verbal threshold (serious injury, permanent impairment, disfigurement) or a monetary threshold (medical bills exceeding a dollar amount). When PIP runs out from serious injuries, you are very likely past the threshold for filing a suit.
Should You Buy PIP If It Is Optional in Your State?
If PIP is optional in your state, it is worth carrying if any of these apply:
- Your health insurance has a high deductible (PIP pays first, with no deductible)
- You are self-employed or your job does not provide sick pay - PIP replaces lost income health insurance never covers
- You frequently have passengers in your car - PIP covers them too
- You live in a state with high rates of uninsured drivers - PIP pays even if the at-fault driver has no insurance
- You want faster payment - liability claims take months; PIP pays within 30 days
PIP typically adds $50-$150 per year to a policy. For $10,000 in coverage that pays immediately after any accident, most drivers consider it worth carrying regardless of state requirement.
Key Takeaway
PIP is mandatory in 12 no-fault states with minimums from $3,000 (Utah) to $50,000 (New York). If your state requires it, file your PIP claim the same day as your accident - do not wait. Tell every medical provider to bill PIP first, not health insurance. Document lost wages with employer letters and pay stubs. When PIP runs out, health insurance takes over for medical bills, and the remaining lost wages and damages become part of your liability claim against the at-fault driver.